The N100 billion fund established by Stanbic IBTC Holding Plc is to help close the infrastructure gap in Nigeria.
Dr. Demola Sogunle, Chief Executive Officer of the Stanbic IBTC Holding Plc, said this at a Hybrid event organised by the Rotary Club of Ikeja, District 9110 on Monday, November 22 in Lagos. He spoke on the topic, “Solving Infrastructure Deficit in Nigeria”.
According to Dr. Demola Sogunle, Chief Executive Officer of Stanbic IBTC Holding Plc., infrastructure deficit truly exists in Nigeria and begs for an immediate solution. “So, in order for us not to complain, we saw the situation and decided to create value by introducing IBTC Infrastructure fund of N100 billion, and the important thing is that we have started disbursing already.“ The plan is simple: we would provide project owners with long-term capital to fund their projects whilst investors enjoy competitive returns as well as achieve set investment goals.
“The Fund would be released in tranches, starting with the first N20 billion tranche which is now open for subscription, providing an avenue for investors to gain exposure to critical infrastructure projects.“The tranche has a 12-year maximum duration,’’ he said.
Dr. Demola Sogunle, Chief Executive Officer of the Stanbic IBTC Holding Plc.
Sogunle also said Nigeria, ranking 7th in terms of population, needed 1.5 trillion dollars over the period of 10 years to close the infrastructure gap, which is a lot of money. He said that the budget that was put to infrastructure projects could not take Nigeria anywhere “The 4.89trillion capital expenditure, dedicated to infrastructure projects accounts for 30 percent of the proposed 2022 budget.
“The infrastructure stock is about 30 percent of our GDP, our GDP is about 400 billion dollars plus; Nigeria infrastructure stock of 30 percent of GDP remains far below the 70 per cent international benchmark and it’s not going to take us anywhere.“This is just for us to know the enormity of the issue,’’ Sogunle said.
He noted that African countries like Egypt, Tunisia, South Africa, etc, were far ahead of Nigeria in terms of infrastructure development. He said that in the 2019 Global Competitiveness Index Report, Nigeria scored 48.33 points out of 100 and ranked 130th of 141 countries surveyed for the overall quality infrastructure. Sogunle mentioned some challenges affecting infrastructure development in the country. These include huge capital outlay versus Budget Constrains and Huge cost of financing, political and regulatory risk which is high, poor maintenance culture, low-risk appetite by financial institutions, and suboptimal record of past projects.
The bank CEO also said that the impact of $10bn infrastructure investment required on GDP growth rate was assumed at N3.6trillion (US$10billion) per year from 2019 to 2030 according to the Nigerian Integrated Infrastructure Master plan (NIIMP). He said that the real GDP was expected to decline by 0.19 per cent in 2020 but rebound to 3.85 per cent by 2021 and 10.68 per cent by 2030, reflecting the impact of the implementation of the plan. He stressed that if 10 percent of the proposed 10 billion dollars, ($1bn) is invested, this would still bode well for the economy and positively impact the GDP growth given the current level of infrastructure deficit.
Sogunle advocated a positive public-private sector collaboration to tackle the infrastructure gap in the country, recommending unconventional financing methods e.g. Road infrastructure tax credit scheme, infrastructure funds, etc. He said there was the need for the implementation of investment-friendly laws, Public-Private Partnership (PPP), procurement (Due process forbids). He also suggested increased participation of private investors in infrastructure investments and consistent sector policies.
…takes trade expo to Houston, Texas, USA in October 2023
By Moninuola Sulaiman
Building on the resounding success of the maiden edition of the Fidelity International Trade and Creative Connect (FITCC) in London, UK last November, leading financial institution, Fidelity Bank Plc, has announced plans to host the second edition of the trade expo in Houston, Texas in the United States of America.
Tagged FITCC Houston, the event would hold on Wednesday, 18th, and Thursday, 19th October 2023 at the George R. Brown Convention Center, 1001 Avenida de las Americas, Houston, Texas 77010.
Situating the critical role FITCC plays in the bank’s export trade strategy, the Managing Director/Chief Executive Officer, Fidelity Bank Plc, Nneka Onyeali-Ikpe stated that, “Fidelity Bank is very much invested in supporting export trade and has consistently demonstrated this by the interventions and innovations that we bring to the space. Beyond the instrument of financing, some of our key interventions in the space revolve around business management capacity development with initiatives like the Export Management Programme (EMP) which we host in partnership with the Lagos Business School and the Nigerian Export Promotion Council (NEPC) and market access development initiatives like FITCC.”
To promote Nigeria’s non-oil exports and facilitate integrations to global supply-chain networks, FITCC Houston will host leading businesses, entrepreneurs, investors, and regulators operating in the commodity, service, creative, fashion, and FinTech sectors in Nigeria and the United States. The participants would explore partnership, co-creation, and foreign direct investment opportunities.
Participating businesses will benefit from curated market access engagements, investment and partnership opportunities, extended brand exposure before a global audience as well as speaking and networking opportunities amongst a long list of benefits in FITCC Houston.
Interested businesses and participants are encouraged to register for the conference at www.fidelitybank.ng/fitcc.
Stanbic IBTC Bank PLC, a subsidiary of Stanbic IBTC Holdings PLC and a leading financial institution in Nigeria, is thrilled to announce that its woman-owned business account, Blue Blossom account, can now be opened by female business owners who have male signatories.
This initiative is intended to foster gender equality while bolstering women’s financial empowerment and inclusion.
The Blue Blossom business account caters to the needs of women entrepreneurs and business owners throughout Nigeria. It offers them a remarkable opportunity to open and manage a business account with the added convenience of a designated male signatory. By implementing this unique feature, Stanbic IBTC Bank is taking bold steps to bridge the gender gap and promote equal representation in the business landscape.
The woman-owned account brings an array of exceptional benefits to its holders. One of its standout features is a zero-maintenance fee, providing cost-effective solutions that empower women to nurture their businesses efficiently. The account also includes complimentary online banking services, allowing holders to manage their finances and conduct transactions anytime, anywhere, conveniently.
Recognizing the crucial role of support networks in fostering women-owned businesses, Stanbic IBTC Bank has formed strategic partnerships with various esteemed business development agencies and organizations. Through these alliances, the bank aims to provide women entrepreneurs with valuable resources, mentorship programs, and networking opportunities, propelling their enterprises toward tremendous success.
“We are thrilled to unveil an account that enables women entrepreneurs to take charge of their finances and drive the growth of their businesses,” expressed Olajumoke Bello, Head, Enterprise Banking, at Stanbic IBTC Bank.
According to Olajumoke, “Stanbic IBTC remains resolute in its commitment to promoting financial inclusion and gender equality. The woman-owned account epitomizes our dedication to these values and shows our relentless support for women entrepreneurs.”
By introducing the woman-owned account, Stanbic IBTC Bank reaffirms its ongoing efforts to support women-owned businesses, foster gender equality, and stimulate economic growth across Nigeria. As a frontrunner in the financial sector, the bank is steadfast in its mission to deliver tailored financial solutions that address the unique challenges and aspirations of women entrepreneurs and business owners, ultimately empowering them to realize their full potential and achieve their business goals.
In a rapidly evolving world where inclusivity and equal opportunities are paramount, Stanbic IBTC Bank remains at the forefront, pioneering initiatives that break barriers and create a level playing field for women in business. The woman-owned account is just one of the bank’s innovative initiatives, embodying their unwavering commitment to shaping a future where women entrepreneurs can thrive and contribute significantly to the Nigerian economy.
Polaris Bank has clarified that she did not violate any law in a recent disengagement of some staff which it said was done in line with the terms of the contract guiding their engagements
The Bank was reacting to a report of the picketing of its headquarters by NUBIFIE this morning by a section of the media.
The Bank disclosed that it has engaged and will continue to engage the union to resolve any lingering labour matters.
The Bank emphasized that a cordial relationship has existed between her and the union over the years and believes that concerns raised by either party can be effectively addressed through dialogue.
Polaris Bank remains committed to fostering a harmonious working relationship and ensuring the well-being of its employees.